Econ 110: Unit 1 Quiz

The first step of the financial planning process is to

The first step of the financial planning process is to

If I can invest a dollar today and earn interest on it, then it should be worth _________ in the future.

more

Future value computations are also referred to as

Compounding

Present value computations are also referred to as

Discounting

A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities is a(n)

Financial plan

To develop a financial plan, one should

Identify specific, realistic goals that are measurable along with a time frame and an action plan

Which of the following long-term goals is stated most clearly?

Invest $50 per month for the next 18 years for my nephew's college fund

The goal of investing $50 per month for the next 18 years for your nephew's college fund is a(n) __________ goal.

Long-term

Which of the following is an example of opportunity cost?

Saving money instead of taking a vacation

Fran Gardner has a goal of saving $25 per month for a TV. Fran's goal lacks

Time frame